This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Better than expected UK Mortgage approvals this morning, the highest since September. Broker Berenberg (25 Jul) started coverage of housebuilders with positive stance on sector and a Buy on BDEV. Highly attractive 8% dividend yield. Government stimulus schemes (Help to Buy) supporting sector. UK interest rates still low.
Risks to BDEV shares include more data suggesting slowing UK house price growth, Brexit uncertainty, a Bank of England interest rate rise on 2 Aug, disappointing full year financial results on 5 Sept and any hints that the generous dividend is at risk.
Consensus is Bullish with 67% of brokers saying Buy and only 6% suggesting Sell, supported by 92% of target prices suggesting upside from current levels to an average valuation of 652p, which is well beyond our target of revisiting the trendline of falling highs at 5560p.
Next Event: Full year Results, 5 Sept
Latest Broker 12-Month Consensus: 67% Buy, 28% Hold, 6% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 1.7 | 0.2 | -4.5 | -13.3 | -12.4 | 28.6 | -14.4 | 42.4 | 55.2 |
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Prepared by Michael van Dulken, Head of Research